VW to Pick Schot as Audi Interim Chief After CEO Arrest

Munich prosecutors had conducted searches at Stadler's private residence as a part of the probe concerning alleged fraud and indirect improprieties with documents.

Prosecutors confirmed to the publication that they had detained Stadler because of a risk that he may suppress evidence, later saying in an official statement that "the suspect has been seen by a judge, who has ordered him to be remanded in custody".

News of the arrest comes as Volkswagen's (VW) new group CEO Herbert Diess is trying to introduce a new leadership structure, which includes Stadler, to speed up a shift toward electric vehicles in the wake of its "dieselgate" troubles.

As NPR has reported, six Volkswagen executives were indicted on May on charges of conspiracy and fraud in connection with the years-long emissions scheme, including former CEO Martin Winterkorn.

German carmaker Audi's CEO, Rupert Stadler, has been arrested. Audi's supervisory board has yet to sign off on the nomination, Sueddeutsche said.

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German news agency dpa reported that prosecutors made a decision to seek Stadler's arrest due to fears he might try to evade justice. "Almost three years after the diesel scandal broke, it takes police to take action against the Audi CEO". Stadler has been with Volkswagen-Audi since 1994 and has held the top managerial spot at Audi since 2007, two years prior to the alleged emissions-cheating activities. The executive was arrested at his home in Ingolstadt.

Martens led a diesel task force at Audi, set up to coordinate the handling of the so-called Dieselgate scandal with its parent company.

The devices were initially found in VW's cars, but its Audi subsidiary has also been embroiled in the scandal. He was named a suspect by the Munich prosecutor's office alongside an unnamed member of Audi's board of management.

The Volkswagen emissions scandal began in September 2015, when the United States Environmental Protection Agency (EPA) issued a notice of violation of the Clean Air Act to German automaker Volkswagen Group.